Monday’s Stock Watch
The major indexes turned in
negative performances for the fourth week in a row, as the NYSE and
Nasdaq exchanges tallied up a day of distribution apiece. Better-than-expected
employment data were shrugged off in early trading Friday, as price action closed
near the lows for the week.
The path of least resistance remains down, with
ongoing fears and uncertainty of war with Iraq dragging on sentiment. Until this
market can give a positive reaction to any news, the trend will remain down.
Tension in North Korea poses another issue needing resolution.
Market breadth continues along with a slightly
bearish bias. New 52-week Lows are holding a slight edge over the nearly
nonexistent Highs list, while Mark Boucher‘s
Bottom RS and ER List put in two negative biased days of 20+ readings, with
the
Top
RS and ER List neutral.
Stocks on ever-shrinking watch lists put in mixed
performances for the week. The markets are absent of any real leadership, while
only a handful of stocks meet our top fundamental and technical criteria. Yet
the search goes on.
From Friday’s action:
Market breadth was negative, with NYSE
declining issues over advancing issues by a ratio of 2.06, and down volume over
up volume by a 3.40 ratio. Nasdaq declining issues over advancing issues came in
at 1.96, and down volume beat up volume by a 3.97 ratio.
Dow Jones Industrial Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating)
closed -0.82%
at 7,864.23. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
closed -1.00% at
829.69.
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) closed
-1.47% at
1,282.47.
1,002
1,095
Declining Issues
2,060
2,087
291,258,000
257,796,000
913,702,000
957,776,000
Total
Volume
1,229,808,000
1,235,674,000
Highs
1
5
75
35
Top sectors:
Fiber Optics, Gold and Silver, Internet, and
Computer Security.
Watch List Action:
International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating) has now made two consecutive closes
below its 50-day moving average as it continues along a five-session losing
streak. The stock remains in a trading range as downside volume decreases.
Apollo Group
(
APOL |
Quote |
Chart |
News |
PowerRating) put in an accumulation day Thursday, and is now parked
just above its 50-day moving average. The stock could potentially be forming a
new handle in here, so we’re going to set a new pivot buy at 45.60. Remember
this is not an ideal environment to go long in, and we would need to see volume
increase by 40% through the pivot for a valid trigger.
Recent Breakouts
size=2>We monitor the action of Recent Breakouts as an indicator of
the market health for IT traders. When breakouts are acting well, this is a good
sign for the likelihood of further sustainable breakouts. When breakouts are
failing, IT traders should be even more cautious.
| color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot | 52-Week High |
Coach Inc. | ( COH | Quote | Chart | News | PowerRating) | 89 | 31.17 | -1.12 | 991,100 | 28.35 | 35.70 |
Garmin Ltd. | ( GRMN | Quote | Chart | News | PowerRating) | 95 | 28.66 | -0.81 | 489,500 | 28.66 | 32.07 |
International Game Technology | ( IGT | Quote | Chart | News | PowerRating) | 85 | 74.84 | -1.23 | 1,121,100 | 74.84 | 80.10 |
Stocks Forming a Handle
| color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot |
Apollo Group | ( APOL | Quote | Chart | News | PowerRating) | 88 | 43.48 | -0.73 | 1,955,600 | 45.60 |
Stocks Building A Base
color=#ffffff size=2>Company Name | color=#ffffff size=2>Symbol | color=#ffffff size=2>12 Month RS | color=#ffffff size=2>Price | color=#ffffff size=2>Price Change | color=#ffffff size=2>Average Volume | Pivot |
None |
Daniel Beighley
href=”mailto:danielb@tradingmarkets.com”>danielb@tradingmarkets.com
If you are new to the “IT” strategy, be sure to
take a look at our
intermediate-term online trading course.
Intermediate-Term Traders
Report is posted on
Tuesdays and Fridays. For other intermediate-term commentary, be sure to read
Mark Boucher (Fridays),
Tim Truebenbach (Tuesdays and Thursdays), and
Gary Kaltbaum (Mondays and Thursdays).